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By Rachel Haig | 12-09-2009 09:18 AM

Don't Despair Over the Dollar

Morningstar.com markets editor Jeremy Glaser assuages dollar doubts and says there are actually benefits to a weaker greenback.

Rachel Haig: I'm Rachel Haig from Morningstar.com. Lately there has been a whole lot of talk about the dollar. At the end of November, it hit 15-month lows against major currencies and then this week it hit 5-week highs. Here with me to talk about whether or not we need to make a whole lot of this is Morningstar's markets editor, Jeremy Glaser. Thanks for joining me, Jeremy.

Jeremy Glaser: You're welcome, Rachel.

Haig: So why has the dollar been so weak lately?

Glaser: I think a reason is that investors have been fleeing the relative safety of the dollar to riskier assets, so that could be currencies that are viewed as little bit riskier or into assets such as stocks or corporate bonds, or asset classes that people were avoiding for a long time because they were worried about the world economy. As things are beginning to stabilize, people are shying away from the relative safety of the U.S. dollar.

Haig: Right. And what's with this week's rise of the dollar? Is there any reasoning behind that?

Glaser: Yeah. I think you're seeing the exact opposite, that now people are starting to get a little bit afraid again. Dubai really shook up the markets a lot. People saw that essentially a government entity, Dubai World, had to not pay debt for six months or have their interest payments for six months really rattled the markets.

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